Bedding & Mattresses Profiler 2017 Sales Bouncing Back Brought to you by Media Group Online, Inc. © 2017 Media Group Online, Inc. All rights reserved.

Lumpy, Bumpy 2016 Mattress Sales According to the International Sleep Products Association (ISPA), more than 41 million mattresses and foundations were shipped during 2016, a 3.1% increase over 2015. This was the 7th consecutive yearly increase, but is lower than from 2014 to 2015. The average unit selling price (AUSP) increased 0.3%, with prices in the North Central and West regions increasing the most at 2.4% each. Unit shipments were the most since the Great Recession, but still 5.8% less than the 2005 level, a record high. A decrease in unit sales began during the third quarter of 2016, and continued during the first quarter of 2017, but higher prices kept revenues steady.

Plush Outlook for the Future ISPA’s Mattress Industry Forecast, released June 2017, forecast a 3.5% increase in unit sales, a 4.5% increase in wholesale dollar value and a 1.0% increase in AUSP for 2017. Sales are expected to continue to increase during 2018 too; 4% increase in unit sales, 5.5% increase in wholesale dollar value and 1.5% increase in AUSP. ISPA attributes its positive outlook to gains in disposable income; a continued recovery in housing, forecast at 16% for new housing and 17% for existing housing, according to Furniture Today; and an associated increased demand for furniture in the US.

Some Top Manufacturers Experiencing Sleepless Nights Among the top US bedding producers, market leader Serta had a decrease of 5.1% in revenues during 2016, due to supply channel issues, but still retained the top spot, beating #2 bedding producer Sealy by $132 million. Sealy revenues increased 3%. Simmons had the biggest revenue increase among the Big Four, at 7.2%. Among the top 15, Ashley Furniture increased its revenue an impressive 19%. Three bedding retailers appeared among the top 10 in Furniture Today’s 2016 Top 100 US Furniture Stores. Ashley HomeStore at #1 had $3.835 billion in revenues, Mattress Firm was #2 with $3.46 billion and Sleep Number was #10 with $1.281 billion.

Consumers Dream of More Comfort Consumers’ expectations of how long a mattress should last decreased to 9.4 years for 2016 from 10.9 years during 2007 (the last research year). The perceived price of a quality mattress increased 19.4%, from $929 during 2007 to $1,110 during 2016. Those expecting to pay the most for a mattress tended to be high income ($50,000 to more than $100,000), have no children, be older (56+) and live in the West or Northeast. When preparing to shop for a mattress, consumers seek information on mattress features (41%), compare product features (46%), look for consumer reviews (45%), and search for information about types of mattress (38%) and mattress brands (33%).

A Mattress Outside Your Front Door Online mattress sales, often referred to as “bed-in-a- box,” continue to increase with a total of 70 to 100 brands, and new ones every month. The US market share for e-commerce mattress brands is estimated to increase 5% to $755 million. Bedding manufacturers are offering exclusive models to brick-and-mortar retailers to help them compete with online-only retailers, including boxed-bed programs for drop shipping or for customers to take home from the store. According to research by The Better Sleep Council, the majority of consumers (70%) bought their last mattress at a store, 17% bought it online and 10% bought it from another channel.

Advertising Strategies Since the consumers who expect to pay the most for a mattress have higher incomes and are 56 years of age and older, TV is where retailers can realize maximum ROI from their ad dollars, as this age group has the highest daily TV viewing time, 6 hours, 42 minutes. Local mattress retailers should consider co-promoting with a homewares/linen store, offering a discount at the other store with a qualifying purchase: a mattress of a certain value and a bundle of new bedding – sheets, pillows, comforter, duvet, etc. Co-promote with a local masseur or masseuse and offer a free 5-minute massage to every customer who presents a code number or word placed in each store’s advertising.

New Media Strategies To target Millennials, concentrate on social proof, testimonials and recommendations from other Millennials posted on Facebook, Twitter and Instagram. Conduct a video contest, inviting Millennial consumers to show them unwrapping their new mattresses and demonstrating their comfort and features. Ask everyone to vote for the most interesting, funniest or other theme, with coupons to voters and grand prize to winner. Share ideas with customers to recycle their old mattresses. If this is a service your store provides, then highlight it on social media. Have your drivers shoot videos of pick-ups and deliveries to homeless shelters and/or recycling centers.